Implications of mandatory corporate social responsibility on rural development in India

Corporate social responsibility (CSR) is the medium through which business establishments play a vital role in rural development. The current research uses document content analysis technique to explore the spending pattern of corporate with regard to CSR initiatives on various aspects of rural development. Further, the implication and impact of mandatory corporate social responsibility policy on rural development in India was also investigated. To address the objective of the study, the CSR initiatives of the top 20 firms listed by Bombay Stock Exchange, for three consecutive years (2013-2014, 2014-2015 and 2015-2016) was explored. The data analysis reveals variance in budgetary allocation for rural development across years. It also brings to light that rural development has been the third most preferred area of CSR spending and has been profoundly influenced by the implementation of the mandatory law on CSR. Based on the findings, the study provides suggestion in areas that necessitate improved attention.